Early Retirement Incentive

for IMRF Employers

IMRF’s Early Retirement Incentive (ERI) is an employer option that allows eligible members to purchase up to five years of service credit at retirement. For each month and/or year of service credit a member purchases, the member’s retirement age is increased accordingly.

The ERI is a tool eligible IMRF employers can use, if and when they need it, to save fringe benefits and payroll costs by providing an incentive for long-term members to retire. Employers are encouraged to either:

Replace no more than 80% of members electing to retire under the program, or

Reduce replacement staff salaries to no more than 80% of current salary levels.

Employers are limited to offering ERI programs once every five years. If an employer submits a resolution adopting an ERI program before a five-year window has passed, IMRF will not implement the program. Employers
may download a copy of the "IMRF Early Retirement Incentive - Employer Information" booklet for further details about this requirement.

The IMRF website provides a brief summary of IMRF benefits and the administration of those benefits. IMRF members' and employers' rights and obligations are governed by Article 7 of the Illinois Pension Code. Statements on the IMRF website are general, and the Illinois state law governing IMRF is complex and specific. If a conflict arises between information in the IMRF website and the law, all decisions are based on the law.